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Wednesday, April 9, 2014

Why T-Mobile's UNcarrier Strategy works

When you look at the top selling cars in the world, here are some of the names you see that made the list:

#1 Toyota Corolla
#2 Hyundai Elantra
#4 Ford Focus
#5 Kia Rio

What do these have in common?  Well ALL of these cars are economy cars.  While having the fastest, smoothest riding, most luxurious ride is venerable, the top 1% earners do not dominate in car purchases.  It is the masses, the bottom 99% that matter most when it comes to profit.  Look at some of the most profitable business in the world: Walmart, McDonald's, to name a few... The theme is cater to the masses.

That is EXACTLY what John Leger and his "UNcarrier team" have been doing during the last year.  Offering to finance the top selling high-end phones in the industry, interest free.  Offering some of the very lowest prices in the market.  Offering the luxury of trading in your phone twice a year for less than what you used to pay for insuring your flagship device.  All of these moves are targeting the value-conscious customers.  The modern consumer, especially after the huge worldwide economic downturn has become value driven, aiming to get the most bang for their buck, so to speak.

T-Mobile's CEO, John Legere, is playing the right tune for today's audience.  If it were the incorrect strategy, you would not have ALL three of the major carriers of the United States, follow suit, offering copycat programs to give the illusion of competition.
Picture Source: Guardianlv

Today, Legere announced T-Mobile's latest assault against the major players of the industry:
A new plan called "Simple Starter" for only $40/month, offering unlimited talk text and 500MB of data.  Remember that only Simple Choice customers get unlimited data worldwide (see T-Mobile website for details).  This is a plan that is sure to lure many more people into the T-Mobile subscribership, easing the pain of the last announcement which was the discontinuation of the T-Mobile Advantage Program, a corporate discount program.  This is, essentially a way to ease the pinch of having lost that discount.  Those wanting TRULY unlimited, unthrottled data will pay twice as much on a Simple Choice program.

The competition, thus, has good reason to be afraid.  The UN-CEO has risen to make a statement that will forever change the wireless industry, one UNcarrier announcement at a time.  As Magenta's network becomes more prolific in rural and suburban areas, be assured that T-Mobile's rise will continue to amaze the establishment and the industry as a whole.  I am sure that you and I both can't wait to here the next 2 announcements that make up the latest UNcarrier movement, 5.0.

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